Why EOBI is not Increasing the Pension Pays?

The current amount of EOBI pension is Rs. 10000 minimum. However, this amount was increased in July 2023 by the government of Pakistan. But it was just a Rs. 1500 increase in the pension as the previous pension payment was Rs. 8500 per month.

Now millions of pensioners are eagerly waiting for the increase in their pension but there is no chance for it right now.

Why EOBI is not Increasing the Pension Pays?

In this article, we will analyze why EOBI is unable to increase the pension payouts in 2024. What are the factors that can help the government to increase the pensions?

Why EOBI is not Increasing the Pension Payments?

The reasons why EOBI may not be increasing pension payments include:

Budget Constraints

EOBI’s ability to increase pension payments is limited by budgetary constraints. The funds available to EOBI for pension disbursements are allocated by the government, and any increase in payments requires sufficient budget allocation. If the government’s overall budget does not allow for additional funds to be allocated to EOBI, then pension increments may not be feasible.

Increase in EOBI Employees

As the number of EOBI-registered employees increases over time, the total amount required to pay pensions also grows. This has strained EOBI’s budgetary capacity to raise individual pension amounts significantly without adequate additional funding from the government.

Economic Conditions

Economic factors such as inflation and economic instability can impact EOBI’s ability to raise pension payments. Inflation erodes the purchasing power of pension funds, making it challenging to maintain or increase pension amounts without corresponding adjustments in funding.

Legal and Regulatory Framework

EOBI operates within a legal and regulatory framework that governs how pension funds are managed and disbursed. Any changes to pension amounts require compliance with these regulations, which may involve lengthy processes or government approvals.

Sustainability Concerns

Ensuring the long-term sustainability of pension payments is crucial for EOBI. Increasing pension amounts without a sustainable financial strategy could jeopardize future pension payments for current and future retirees.